According to most models of intertemporal choice, an agent’s discount rate is a function of how far the
outcomes are removed from the present, and nothing else. This view has been challenged by recent studies,
which show that discount rates tend to be higher the closer the outcomes are to one another (subadditive
discounting) and that this can give rise to intransitive intertemporal choice. We develop and test a generalized
model of intertemporal choice, the Discounting By Intervals (DBI) model, according to which the discount rate
is a function of both how far outcomes are removed from the present and how far the outcomes are removed
from one another. The model addresses past challenges to other models, most of which it includes as special
cases, as well as the new challenges presented in this paper: Our studies show that when the interval between
outcomes is very short, discount rate tends to increase with interval length (superadditive discounting). In the
discussion we place our model and evidence in a broader theoretical context.